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Pressure on Government on tax, not leadership

TONY EASTLEY: It may be a public holiday in much of the country, but Federal MPs are making the trek back to Canberra for what may be the last sitting fortnight before the election and it's set to be a boisterous session, with the unresolved stand-off over the resource super profits tax likely to dominate.

Some Labor MPs contacted by AM reject suggestions that there's pressure on the Prime Minister's leadership; they blame the speculation on a small number of disaffected Caucus members and the media.

Here is chief political correspondent, Lyndal Curtis.

LYNDAL CURTIS: It seems the only way the Government is getting out the messages it wants to at the moment is by paying for it.

EXTRACT FROM FEDERAL GOVERNMENT HEALTH ADVERTISEMENT: Under the new health reform the Australian Government is delivering the most significant improvement to our...

LYNDAL CURTIS: Health ads have been running for a while and last night the television ads for the national broadband network aired for the first time.

EXTRACT FROM FEDERAL GOVERNMENT HEALTH ADVERTISEMENT: So instead of a future trickling through the keyhole, we are opening the door to an exciting new world.

LYNDAL CURTIS: Where it's not buying the air time or newspaper space, the Government's core messages are getting crowded out by the resource super profits tax. It's been that way for weeks now as the Government seeks to prosecute its case against the increasingly strident opposition of the mining industry.

The Coalition is happy to have it that way and wants to make this next sitting fortnight all about the tax.

The Treasurer said on Friday the Government is moving to the third phase of finalising the design and for some senior Labor MPs that final phase can't come soon enough. They say they want the matter resolved and that internal pressure is increasing.

MPs AM spoke to say there is no doubt the tax debate is hurting Labor in Western Australia and in some seats in Queensland. One says the Government needs to sell the simple messages better - like the industry doesn't pay the tax until it's making super profits. Another believes the industry is hardening its position because it doesn't want other countries to adopt the Australian tax model.

One thing the MPs AM spoke to agree on is that while the tax debate isn't going well it's not resulting in serious talk about ending Kevin Rudd's leadership. They were all adamant there is no move against the Prime Minister and any leadership talk is coming from a handful of malcontents. One MP says the votes aren't there for Julia Gillard and in any event, she's publicly saying it's absurd to suggest she would challenge.

There are issues other than the mining tax causing the Government some heartburn including asylum seekers and the decision to delay the emissions trading scheme.

The Greens Leader, Bob Brown wants to help Labor rebuild its environmental credentials. He is launching his own TV ad calling on the Government to step in and end logging in native forests and he says the Greens have polling showing a majority of Australians would support the move.

BOB BROWN: It is a great opportunity for the Rudd Government and the governments of New South Wales, Victoria and Tasmania to help the industry to achieve that goal and there will be a lot of Australians applauding from the grand stand if they do achieve that goal.

LYNDAL CURTIS: Is it to your political advantage to help Labor rebuild its environmental credentials?

BOB BROWN: I am always, whichever government can help to protect forests I'll be behind them and so will the Greens.

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